Reputation will still operate on a color-based system, with green representing "Good Players," yellow meaning "needs work" and red warning players "avoid me." Though Microsoft admits that most Xbox LIVE players fall within the "good players" category, they are taking a few extra measures to ensure players don't slip up.

For starters, warnings will now be issued for "needs work." Beginning this month, some players will start receiving reputation warnings as their reputations drop due to community feedback. "The purpose of these communications is to remind players about their effect on the community and encourage them to have more positive interactions," Xbox LIVE Program Manager Micheal Dunn explained. "These warnings are based on community feedback collected since Xbox One launched."

If players don't heed these warnings and continue to negatively impact the Xbox gameplay experience, they will begin to experience penalties. "For example, people with an 'Avoid Me' rating will have reduced matchmaking pairings and may be unable to use certain privileges such as Twitch broadcasting," Dunn warned.

Microsoft assures players that the algorithm designed doesn't penalize you for a few bad reports over a few weeks of play. The system also takes into account false reports and adjusts accordingly. "At the end of the day, our goal is to match you with other gamers you’ll enjoy, and create the best gaming community online," Dunn concluded.

Last week, Microsoft revealed new plans to encourage better behavior on Xbox LIVE. Rather than only punish negative users, Microsoft is looking into rewarding well-behaved Xbox LIVE users who contribute positively to the online Xbox experience.